What if the company no longer exists?

If the adviser or company that sold you the endowment no longer exists you should contact the Financial Services Compensation Schemeopens in new window, which might be able to pay compensation if the firm that sold you the endowment has ceased trading.

Right of appeal

After the firm has investigated your complaint it should give you a final decision within eight weeks, and this might include an offer of compensation.

If you are not happy with the response you receive, you’re entitled to make a complaint to the Financial Ombudsman Service within six months, which will look independently at your case.

The Ombudsman is free and its contact centre staff will talk you through the process on 0800 023 4567 or 0300 123 9123. Lines are open Monday to Friday 8am to 8pm, Saturday – 9am to 1pm.

What the Ombudsman’s decision means

If the Ombudsman decides in your favour it might rule that the company pays compensation to you.

This will not necessarily cover any mortgage shortfall you have.

It’s merely meant to return you to the position you would be in if you had received proper advice.

If you are happy with this decision you can accept it – in which case it is binding on both you and the company.

This means you cannot decide to claim more compensation at a later date.

If you are not happy with the decision you can take your case to court, although it could be costly.

Cashing your policy in

You might be thinking about cashing in your endowment policy, particularly if you’re awarded compensation.

However, an endowment is a long-term investment and by cashing it in early you might get a much smaller amount than if you had waited until maturity.

In addition, endowments have life insurance built into them, which you might need.

Finally, remember that if you cash in your endowment you will be left with nothing in place to repay your mortgage at the end of the term, so you must plan for this. Speak to a financial adviser if you’re not sure what to do.